Technical efficiency as a factor of Russian industrial companies’ risks of financial distress

Anastasia Mogilat () and Irina Ipatova
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Anastasia Mogilat: Central Bank of the Russian Federation, Moscow, Russian Federation

Applied Econometrics, 2016, vol. 42, 05-29

Abstract: The paper proposes a two-step methodology of investigation the impact of technical efficiency (estimated by stochastic frontier model) on Russian industrial companies’ risks of financial distress (estimated by bankruptcy prediction model — see King, Zeng, 2001). We show that growth of technical efficiency has robust, significant and large impact on the expected probability of financial distress. We also extend the «benchmark» specification of bankruptcy prediction model by including dummy variables for structural breaks in bankruptcy dynamics associated with significant changes in Bankruptcy law.

Keywords: technical efficiency; bankruptcy prediction model; Russian industrial companies; SFA; logit analysis. (search for similar items in EconPapers)
JEL-codes: C25 C43 D24 G32 G33 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:ris:apltrx:0289

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